Watch What the Fed Says and What the ECB Does

The U.S. central bank is certain to continue its bond buying while Europe likely will cut rates. Markets benefit most.

Central banks take center stage this week with the Federal Reserve and the European Central Banks holding policy-setting meetings. While the U.S. monetary authorities are certain to maintain their current stance, the ECB is likely shave its key policy rate.

The Federal Open Market, which meets Tuesday and Wednesday, won't make any change in its current securities purchase program, hoovering up some $85 billion a month in Treasury and agency mortgage-backed securities. And there will be no change in the 0-0.25%...